Jessica: Consumer Proposal for a Professional

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‘Jessica’ a Case History: Consumer Proposal for a Professional

When she first contacted David Sklar & Associates, Jessica (not her real name) was a single, 28 year old, Toronto professional – whose career and future was threatened by her out-of-control personal finances.

At 24, Jessica had graduated with a Bachelor of Commerce degree. After a six-month job search, she found an entry-level position in her chosen field, paying $22,000 per year. By that time, she had amassed $12,000 in Student Loans, $7,000 in credit card debt, and owed her older brother $11,000.

During her first year of employment, Jessica was able to get an unsecured, $20,000 loan from her bank – which she used to pay off her credit cards and her brother. Unfortunately, she continued to use her credit cards and live beyond her means.

At work, Jessica performed well and her income increased to $25,000 per year. However, her personal finances were a mess – she missed payments and she began to receive collection calls at work. Jessica’s manager spoke to her about the collection calls. He advised her that having out-of-control personal finances would lead others to question her ability to manage business finances.

Desperate to fix the problem, Jessica approached her bank for a consolidation loan but was turned down. When she spoke with the credit card companies, they would not negotiate with her. She called her brother for a loan, but he suggested that she speak with a Licensed Bankruptcy Trustee instead.

A Bankruptcy would make Jessica unemployable in her chosen field. Worried that she might not be able to continue in her profession, but not knowing what else to do, she took her brother’s advice and called David Sklar & Associates Inc (DSAI) for an appointment.

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At her initial consultation with DSAI, Jessica carefully reviewed her financial situation with Estate Administrator, Jason Sklar – the highlights of which were:

Income$25,000
Unsecured Bank Loan$19,000
Credit Card Debt$7,500
Student Loans*$10,500

 

When Jason discussed all of her options, Jessica was relieved to find out that a Consumer Proposal would:

    • stop the collection calls,
    • reduce her debt load, and
    • NOT put her into Bankruptcy.

Working with Jessica, Jason prepared her Consumer Proposal, which DSAI then registered with the Office of the Superintendent of Bankruptcy; presented the terms to her creditors; and received creditor acceptance.

Jessica’s Proposal was to run for 60 months, during which time she would pay $275/month to DSAI, who would distribute the payment in accordance with the Proposal. At the end of the 60 months, if Jessica honoured the agreement, she would be freed of the debts covered by the Proposal (excluding the Student Loans*).

Although Jessica was familiar with business budgets, and had toyed with personal budgets in the past – she discovered that the process of creating a realistic and liveable budget with Jason, enabled her to understand how she could succeed.

It should be noted that attending two financial counselling sessions are a mandatory requirement in the administration of a consumer proposal.

During her initial credit counselling session, Jessica announced that she had become engaged but was worried that her spending issues might mean problems in the future. Jason suggested the couple create an extremely-limited budget for their wedding and stick to it. Past experience had shown Jason that couples who began their marriage in a financially responsible way and continued to keep a family budget, stood a better chance of financial success.

Although Jason did not receive an invitation to Jessica’s very small and budget-wise wedding – he heard all about it at their next credit counselling session. During that meeting, Jessica also shared details on the family budget her and her new husband had set up and were following.

At the end of 60 months, having honoured all the terms of her Proposal, Jessica was released from the unsecured debt covered by the Proposal (except the Student Loans*). She and her husband were then able to move on to the next phase of their marriage – confident in their ability to manage their finances.

 

*Due to the unique legal nature of Student Loans and the specifics of Jessica’s case – while the Student Loans would receive a portion of the $275 monthly payments, at the end of the Proposal, Jessica would still be required to pay back the balance owing on the Student Loans after any dividends they had received during the term.

To protect our client’s privacy, details of this case have been altered.

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I had a great experience with Jerry Janiec and his team at David Sklar and associates. Within a week I was already accepted and filed for bankruptcy and in a few months I will be debt free! It feels like a lot of stress is off my shoulders. Jerry and his team are very friendly, helped me along the way and was there to explain every detail of the process with me. He gave my his card and is just an email/call away if I need any help with paperwork and completing my duties. He is a very patient and kind professional and I am so glad I chose him and this company to help me fix my financial problems. If you need help with a consumer proposal or bankruptcy (like I did) I highly recommend Jerry Janiec and David Sklar and associates!
Lisa Gomez
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Very professional and caring. Cori, explain everything and listened to my situation. If I didn't understand, she will explain it again. I'm glad that I went to David Sklar and Associates for my financial difficulties.
Richard Hong
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Great experience with this company . Especially Jennifer N. communication was amazing and really helped out my situation. Highly recommended her and David S .
Jay Mil
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Everything went well. I will update in 5 years
Trisha C
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My experience with Cori was phenomenal. Cori took the time to explain the process thoroughly, listened to my concerns and reassured me. Cori has exceptional people skills and cares about the people she is helping. The experience throughout was professional, kind, warming and inviting.
Angie
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A huge thank you to Jackie S and to the David Sklar and Associates team. Steps made easy , Jackie S has been there during the entire process , whether it was through emails or phone calls . I felt acknowledged and respected . I’d recommend David Sklar and Associate at a heart beat !! Cheers , Dennis
Dennis Armstrong
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Very happy to talk with grace and she explained my options.Grace is very knowledgeable,friendly,and helpful. She made feel very comfortable,with her help I am on the road to be debt free. She relieved so much stress. I highly recommend them.
Kelley Roberts
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David Sklar & associates is the place to be if you’re looking for help on your debt consolidation. Kudos on their staff Miss Grace Cuffaro who were very patient guiding me on complying all required documents.
Nhie GU
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Reduced my stress and gave me a second life. Sincere heartfelt thanks to the team.
Selvaraj Dhanagopal
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I am very pleased with the experience with your company. Great customer service and very professional. They made me feel like dealing with caring and friendly people. Jackie is a sweet lady. All of them very helpful.
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